Magellan Identifies Four New Targets at Cuiu Cuiu with Surface Samples of 7.0-203.5 g/t Gold

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/04/12 -- Magellan Minerals Ltd. (TSX VENTURE: MNM)(OTCQX: MAGNF) ("Magellan") is pleased to report the results of continued prospecting work aimed at targeting high grade structures at its Cuiu Cuiu project located in the state of Para in northern Brazil. The Cuiu Cuiu project currently contains 3.4Mt @ 1.0 g/t (100,000oz) of Measured resources and 31Mt @ 1.2g/t gold (1,200,000oz) of Inferred resources (see press release dated 8th March 2011).

Highlights include:-

--  203.5 g/t gold in a grab sample from the previously unknown Quebrabunda
    showing located approximately 1km north of the Moreira Gomes deposit
    (0.7Moz comprising 14Mt @ 1.5g/t)
--  46.4 to 128.6 g/t gold in linear 1 metre chip samples from the
    previously unknown 6 Irmaos zone which is located between 180 and 330m
    immediately south of the Moreira Gomes deposit
--  7.0 - 14.9 g/t gold in grab samples from the previously unrecognized
    Cuiabano zone located 500m north of Moreira Gomes and 300m NE of the
    Machiche showing which was previously tested with one hole (3.3m @
    7.4g/t gold)
--  10.9 g/t gold in a grab sample from the previously unknown Ivo zone
    located 800m north of Moreira Gomes and 900m east of the Jerimum de
    Baixo zone

Of 167 holes drilled at Cuiu Cuiu thus far, only 3 have targeted high grade vein structures at the Machiche (3.3m @ 7.4g/t gold) and Guarim showings (0.5m @ 30.2g/t gold). At least 20 high grade structures have been identified within the Cuiu Cuiu area to date.

The discovery of four new high grade and untested gold showings in the vicinity of the Moreira Gomes deposit confirms the potential for adding significant high grade resources at Cuiu Cuiu in the short term.

Of particular note are the Quebrabunda and Ivo showings which appear to be located on the same E-W trending structure. Quebrabunda returned a value of 203.5g/t gold and Ivo returned 10.9g/t gold. Both showings are located 1.4km apart along an E-W trending structure which is parallel to Moreira Gomes and coincident with a magnetic low anomaly (see map on website). Previous sampling from nearby artisanal workings at the Cuiu-Cuiu showing 100m east of Ivo, returned 20.1 g/t gold.

The identification of the 6 Irmaos zone is perhaps the most significant discovery at Cuiu so far during 2012. Four samples from two separate structures located between 180 and 330m south of the Moreira Gomes deposit returned values of 46.4, 55.0, 122.2 and 128.6g/t gold. These results follow previous sampling from two other structures in the same area which returned 17.0 and 2.2 g/t gold. Hole 104 was previously drilled 250m east of the current samples and intersected 7.5m @ 18.8g/t gold.

Magellan has identified four distinct mineralized zones at Cuiu Cuiu which are anticipated to be amenable to open pit mining methods. These include Central, Central North, Moreira Gomes and Jerimum Baixo. The Central and Moreira Gomes deposits contain combined resources of 100,000oz of gold (3.4Mt @ 1g/t gold) in the Measured category and 1,200,000oz of gold (31Mt @ 1.2g/t) in the Inferred category. These resources were calculated on the basis of 25,957m of drilling. An additional 20,849m of exploration and step out drilling has been completed since the release of the initial resource.

Interpretation of data from the recently completed IP survey at Cuiu Cuiu together with surface prospecting and sampling at Cuiu Cuiu, is ongoing in advance of further drilling.

Magellan's QA/QC program includes the insertion of standards, field duplicates and blank material into the sample sequence with the normal core samples to monitor sampling variances, laboratory precision and accuracy.

This press release was reviewed by Dennis Moore, B.Sc., M.Eng., a member of AIG, AUSIMM, and the SEG, a qualified person in compliance with National Instrument 43-101.

Magellan Minerals (TSX VENTURE: MNM) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

News Release #2012-10

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:

Magellan Minerals Ltd.

Alan Carter

President and CEO

604.676.5663
info@magellanminerals.com


Magellan Minerals Ltd.

Jennifer Duthie

Corporate Communications Manager

778.370.0519
Jennifer@magellanminerals.com
www.magellanminerals.com